On September 26, 2011, a federal judge for the Northern District of Oklahoma, dismissed National Indemnity Co. (“NICO”) as third party defendant in a declaratory judgment action, brought by Canal Insurance Co. against its insured, Montello.  Defendant Montello, a distributor of oil products that contained asbestos, sought liability coverage for asbestos related litigation by filing a third-party complaint against several reinsurers including NICO.  Although NICO did not insure Montello during the period it sold asbestos-containing products, Montello attempted to hold NICO liable pursuant to its reinsurance agreement with Continental Casualty Co. (“Continental”), another insurer of Montello during the relevant period.

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